The social security institution seeks actuarial input in identifying relevant catastrophic risks and deepening the understanding of such risks.

This guideline covers specific issues related to the management of catastrophic risks. A catastrophic risk is defined as a future event, which endangers and/or significantly weakens an organisation or system. Catastrophic risks threaten the sustainability and benefit adequacy of a social security scheme as well as the administration and delivery of benefits and services.

Management of catastrophic risks is an emerging area, and this guideline focuses on steps social security institutions need to take to deepen their understanding of such risks. While the principles underlying their management are the same as other risks (see Guideline 31), the importance of such risks may eventually requires a dedicated approach to their management.